3.3.1
Economic Recovery, 1945-1955
Aftermath of WW2
Aftermath of WW2
Germany’s economy and society were destroyed by WW2.
Damage to the population
Damage to the population
- It is estimated that around 4.3 million German troops were killed during the war. It is believed that two thirds of the men born in 1918 did not survive WW2.
- This left millions of widows (‘women standing alone’) to look after their families.
- Between 350,000 and 500,000 civilians were killed during the Allied bombings.
- 20 million Germans were homeless.
Damage to industry
Damage to industry
- Key industrial cities, such as Dresden, had been destroyed by the Allied bombings.
Damage to agriculture
Damage to agriculture
- German agricultural production in 1945 was 35% of pre-war levels.
Occupation
Occupation
- After Germany surrendered on 7th May, the country was initially occupied by Soviet troops.
- The other Allies (USA, Britain and France) followed suit shortly after.
- Life for the German people was not easy:
- Food shortages were common.
- Allied forces treated civilians poorly and incidences of rape were common.
The Development of Bizonia
The Development of Bizonia
In 1947, Britain and the United States combined their zones in Germany to form Bizonia. This was a direct violation of Potsdam and angered the Soviet Union.
Clashes between the East and West before 1947
Clashes between the East and West before 1947
- Zones occupied by the British, French and United States were run as capitalist economies.
- Free trade was used to stimulate economic growth.
- But the Soviet sector was run along communist lines.
- Stalin and his government confiscated produced goods in Germany for the Soviet Union.
Economic problems
Economic problems
- The harsh winter of 1946/1947 led to shortages in Germany. Zones had to introduce rationing.
- Food imports were costing on average $700 million per year.
- It became apparent that the zones needed to cooperate.
Creation of Bizonia
Creation of Bizonia
- Bizonia unified the British and American zones economically.
Creation of Trizonia
Creation of Trizonia
- In April 1949, France joined Bizonia to form Trizonia.
Currency Reform
Currency Reform
The reform of currency in Trizonia triggered the Berlin Blockade. This led to the permanent division of Germany until 1990.
The Military mark
The Military mark
- In 1945, the Military mark had been introduced as German currency.
- However, the Soviet zone had printed lots of notes and was devaluing the currency.
- Furthermore, the shortages after 1946/1947 meant inflation was a risk.
The Deutschmark
The Deutschmark
- The Deutschmark was introduced to replace the Military mark.
- The Soviet Zone, however, rejected the currency change.
- Britain, France and the United States continued to reform their currency.
- The currency reform was very successful. It led to renewed confidence in the German economy.
The East German mark
The East German mark
- In response to the Allied currency reform, the Soviets introduced their own currency.
1Political & Governmental Change, 1918-1989
1.1Creation & Collapse of Weimar, 1918-1932
1.2Nazi Dictatorship, 1933-1945
1.3Return to Democratic Government, 1945-1989
2Opposition, Control & Consent 1918-1989
2.1Opposition to Government, 1918-1989
2.2Controlling the People, 1918-1989
3Economic Developments & Policies, 1918-1989
3.1Reacting to Economic Challenges, 1918-1932
3.2Controlling the Economy, 1933-1945
3.3Creating the Social Market Economy, 1945-1989
4Aspects of Life, 1918-1989
4.1Attitudes Towards Women, 1918-1989
4.2Education & Cultural Developments, 1918-1989
5Historical Interpretations
5.1Influence of German History
5.2Hitler & Foreign Policy
5.3Contribution of Other Nations to WW2
5.4Reasons for Invading Poland
Jump to other topics
1Political & Governmental Change, 1918-1989
1.1Creation & Collapse of Weimar, 1918-1932
1.2Nazi Dictatorship, 1933-1945
1.3Return to Democratic Government, 1945-1989
2Opposition, Control & Consent 1918-1989
2.1Opposition to Government, 1918-1989
2.2Controlling the People, 1918-1989
3Economic Developments & Policies, 1918-1989
3.1Reacting to Economic Challenges, 1918-1932
3.2Controlling the Economy, 1933-1945
3.3Creating the Social Market Economy, 1945-1989
4Aspects of Life, 1918-1989
4.1Attitudes Towards Women, 1918-1989
4.2Education & Cultural Developments, 1918-1989
5Historical Interpretations
5.1Influence of German History
5.2Hitler & Foreign Policy
5.3Contribution of Other Nations to WW2
5.4Reasons for Invading Poland
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